PTT Exploration and Production Public Co. Ltd.

The stable outlook on PTTEP reflects the outlook on PTT and our expectation that PTTEP will remain a core subsidiary of the parent over the next 24 months. We may downgrade PTTEP if any of the following occurs: We lower the rating on PTT. This could happen due to negative changes in the sovereign credit rating on Thailand, our opinion of the likelihood of extraordinary government support, and our assessment of PTT's SACP; or PTTEP's business integration with PTT shifts considerably, such that PTTEP's contribution to consolidated cash flow lessens or PTT's shareholding in PTTEP falls below 50% and changes our assessment of PTTEP's strategic importance to PTT. We could revise downward our assessment of the SACP of PTTEP if:

...PTT Exploration and Production Public Co. Ltd.'s (PTTEP) spending will remain consistent with its "Coming Home" strategy. PTTEP's acquisition of assets from Murphy Oil Corp. was its largest in several years and will consolidate the company's footprint in Malaysia. At the same time, PTTEP will operate the Bongkot and Erawan gas fields in the Gulf of Thailand following the concession renewals. We estimate the bulk of PTTEP's capital employed will remain in Southeast Asia. That should limit execution risks related to the development of these fields, given the company's intimate knowledge with the region's geology. Concession wins in Thailand could benefit the company's reserves significantly. PTTEP is still assessing the reserves accretion from its winning bid for the extension of the Bongkot and Erawan concessions in Thailand. In our view, the impact could be material and could raise the company's reserve life substantially and sustainably above five years. PTTEP's balance sheet will remain...

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